FinancialMarketsChap17

FinancialMarketsChap17 - Firms Vocab Ch 17. Anticipation...

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Firms Vocab Ch 17. Anticipation note – Debt with a maturity between 3 months and 3 years, which municipalities sell in anticipation of some future inflow, from taxes, revenues, or other sources Appropriation-backed bond – Obligation of an agency or authority of a state that carries a potential state liability for making up shortfalls in the issuing entity’s obligation Asset-backed bond (or structured bond or dedicated revenue bond) – Municipal Bond structured as asset-backed securities that are backed by “dedicated” revenues such as sales tax, tobacco settlement payments, fees, and penalty payments. General obligation debt – Broadest type of tax-backed debt. Includes two types of general obligation pledges: 1) unlimited tax general obligation debt – the stronger form. It is secured by the issuer’s unlimited taxing power. 2) limited tax general obligation debt - There is a statutory limit on the tax rates that the issuer may levy to service the debt. Insured bonds – Municipal bonds backed by insurance policies written by commercial
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This note was uploaded on 01/27/2010 for the course ECON 252 taught by Professor Robertshiller during the Spring '08 term at Yale.

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FinancialMarketsChap17 - Firms Vocab Ch 17. Anticipation...

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